China cuts Loan Prime Rates: 1 year to 3.7% (from 3.8%) & 5 year to 4.6% (from 4.65%)
The People's Bank of China cut its Medium-Term Lending Facility rate to 2.85%
- from 2.95%
- injected 700bn yuan with 500bn maturing
- 1 year MLF
- first cut since April of 2020
On the 7-day reverse repo today, rate cut to 2.1% from 2.2%
- 100bn yuan injected today
- 10bn yuan matured today
On Thursday this week, 20 January, we get 1 year and 5 year Loan Prime Rates set.
A cut to the MLF will be seen as an indication the LPR rates too could see a cut.
Asian stock go higher after this Bank of China Move Nikkei +1% , Topix +0,89, Kospi +0,49, Hang Seng +2,38%